Best Egg is a trademark of Marlette Funding LLC, a national lender of unsecured loans that was founded in 2014 by a group of former Barclays PLC bankers. In just 10 months, Best Egg arranged $200 million in consumer loans. It took LendingClub 5 years to reach that milestone. As of December 2016, Best Egg has issued over $2.5 billion in loans. Best Egg is based in Wilmington, Delaware and has an A+ rating with the BBB.
How Does Best Egg Work?
Best Egg provides a marketplace to connect investment managers, banks, and other financial institutions with borrowers. It is similar to the service offered by Prosper and LendingClub. However, Best Egg does not allow small investors to provide funding and requires lenders to buy only whole loans. Another difference is that Best Egg aligns its interests with investors by taking on some of the risk of a loan defaulting while also taking a greater share of the profits.
Loan applications are processed online, and qualified borrowers could have their funds deposited in as little as a day. Unlike other loan marketplaces that require a waiting period to find investors to take on a loan, Best Egg has large institutions ready to fund qualified applicants. All loans are made by Cross River Bank, a New Jersey chartered bank that is insured by the FDIC.
What Are The Interest Rates?
Interest rates range from 5.99% to 29.99% APR and certain criteria during the life of the loan. There is also a .99% to 5.99% origination fee, which is included in the APR but deducted from the loan amount. Best Egg doesn't specify the criteria borrowers must meet to qualify for its best rates. Depending on your credit profile you could get an excellent rate that rivals what you can expect from banks and credit unions or one that is as high as the worst of credit cards.
How Much Money Can I Borrow?
Loan amounts with Best Egg range from $2,000 to $35,000. Borrowers can choose between a 3 or 5-year term. Notice those are the only two terms you can choose from and that the 5-year term always comes with a 4.99% origination fee. However, there are no prepayment penalties, so borrowers are not charged additional fees for making extra payments or paying off the entire balance early.
In Massachusetts, the minimum loan amount is $6,000, and in Georgia, it is $3,000.
Which States Does Best Egg Operate In?
Best Egg operates in all states.
What Is the Application Process Like?
Best Egg's application form is entirely online and offers one of the simplest and fastest routes to an online loan. Approvals are fast if you meet Best Egg's loan requirements. This is because unlike other loan marketplaces, Best Egg has investors who have pre-approved borrowers that meet a certain criteria.
How Is Best Egg Better than Other Lenders?
Best Egg offers fast loans with fixed interest rates and fixed monthly payments. It is a huge benefit to know your fixed rate and what your monthly payments will be up front. If your credit is good, you can qualify for interest rates as low as 5.99% APR. There is an origination fee of .99% to 5.99% to consider, which is set at 4.99% for borrowers with a 5-year term. However, even the higher rates are competitive and loan approvals are fast because Best Egg has partnered with large financial institutions that are ready to approve eligible applicants.
* Best Egg loans are unsecured personal loans through Cross River Bank, a New Jersey chartered bank, member FDIC. Equal Housing Lender. “Best Egg” is a trademark of Marlette Funding LLC. Loan amounts range from $2,000 to $35,000. All Best Egg loans in Massachusetts must exceed $6,000, loans in Ohio must exceed $5,000, and loans in Georgia must exceed $3,000. The Annual Percentage Rate (APR) is the cost of credit as a yearly rate. The APR ranges from 5.99% to 29.99%, which may include an origination fee of 0.99%–5.99%. Any origination fees on five-year loans will be at least 4.99%. Origination fees are deducted from loan proceeds. For example, a five-year $10,000 loan with 9.99% APR would have 60 scheduled monthly payments of $201.81, and a three-year $5,000 loan with 5.99% APR would have 36 scheduled monthly payments of $150.57. The APR offered will depend on your credit score, application information, loan amount, loan term, and credit usage history. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You must have a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate. Your verifiable income must support your ability to repay your loan. Upon loan acceptance, the timing of funds availability may vary depending upon your bank’s individual policies.